CVS buys Target pharm biz for $1.9B

Post date: Jun 16, 2015 4:37:33 PM

Drugstore chain CVS Health (CVS) will acquire big-box retailer Target's (TGT) pharmacy and clinic business for $1.9 billion, the companies said Monday.

The deal comes a little less than a month after CVS entered into an agreement to acquire Omnicare, for about $12.7 billion, in a move to expand its presence in the senior care market.

More than 1,660 Target pharmacies in 47 states will be rebranded as CVS/pharmacy. Target's clinics, nearly 80 in total, will be renamed MinuteClinic.

The retailers are getting cozier on another front, too. Target will seek five to 10 locations for new small-format Target Express stores that would also have a CVS/pharmacy inside.

"This long-term strategic relationship will certainly benefit the patients, the employees and the shareholders of both companies," CVS Health CEO Larry Merlo said in a conference call.

http://www.usatoday.com/story/money/2015/06/15/cvs-health-target-pharmacy-acquisition/71239452/